I believe HPQ will go above 50 mark by May. H-P has been and will remain on a upward swing for some time. And with the large marketing campaign about to start from Mircosoft with their Vista S/W release and with a few other PC oriented products coming out next quarter from H-P, it feels like this is a sure thing. I think this is just the beginning for this under-valued company! Buy the Calls again!
HPQ will need to keep the momentum going forward, and they will be in the $50's in FY2007 for sure. But it will be hard to do this internally, without some additional "?KEY" acquisitions. Pehaps software companies, maybe a services company, or maybe some new product introductions that keep them ahead of the stiff competition. Should have some good announcements coming soon for Q1 results, that will help as well.
To get into the 50's HP is going to need more than acquisitions. While their earnings have beat estimates, they will need even better earnings to keep the P/E ratio low. What it's really going to take to propel HP is some game changing technology to come out of HP Labs that will drive new, sustainable and big revenue. Picking up some fringe software company with profits of $30M/yr isn't going to cut it.